Whether you’re moving up within your current company or moving across the country for a new opportunity, financial considerations come into play. If you’re moving to a new city, you may have to adjust to a higher cost of living. If you’re staying in town but switching companies, you may have to adjust to a longer commute and higher gasoline bills. Even if you’re staying within the same company for a promotion, don’t assume your paycheck is the only thing that will change.
Whether you’re moving up within your current company or moving across the country for a new opportunity, financial considerations come into play.
If you’re moving to a new city, you may have to adjust to a higher cost of living. If you’re staying in town but switching companies, you may have to adjust to a longer commute and higher gasoline bills. Even if you’re staying within the same company for a promotion, don’t assume your paycheck is the only thing that will change.
Let’s examine just a few ways a new career can shake up one major area of your finances in particular: insurance.
If you’re relocating, you must update your homeowners or renters insurance coverage. Average annual premiums vary widely by state, from more than $1,300 in Louisiana to less than $500 in Utah. Plus, any differences in size, construction, location and other features of your new dwelling could have big implications for your home or renters insurance policy and premium, even if you’re just moving across town.
If you’re launching a home-based venture, you’ll have even bigger insurance fish to fry. Most standard home insurance policies typically limit coverage for a home business if they provide it at all, so you’ll need to secure business insurance in order to be protected. Your business insurance premium will depend on your location, type of business and other factors, so make sure you’ve planned accordingly before making this kind of big career change.
If you relocate for a new career, you’ll also need to update your auto insurance policy. While liability coverage is mandated in every state, other requirements (and even the limits of your liability coverage) differ widely – check with your new state's Department of Insurance. You'll definitely have to get a new driver's license, too.
Even if you don’t move, changes in your commute could affect your car insurance premium. Increasing miles every day increases your odds of being involved in an accident, so you could see your premium go up. Conversely, if your new job is closer to your house or if you’re now able to take public transportation to work, you could see a significant drop in what you pay for coverage.
If you’re the primary bread-winner of the household and your family depends on your salary, you'll need to re-evaluate your life insurance policy. It's set up to provide income replacement for family members after your death. If their costs of living have risen with your income (new cars, bigger house, etc.), they could find themselves severely underinsured if you don't increase your coverage.
Hopefully, your new job offers a great package of medical benefits, but it’s still important to weigh your options before deciding on coverage. This is true especially for those whose spouses also have employee benefits – you’ll have to decide whether it’s a good idea to integrate your benefits or keep them separate. In addition to comparing the price tags on both benefits packages, do some research into each of your available coverages, deductibles (will you have to satisfy an individual deductible, a family deductible or both?), co-payments, and other important policy features. If you’re not married, it’s still a best practice to make sure you understand these features before signing on the dotted line.
Starting a new career is an exciting opportunity; stay on the right track by protecting yourself and your family with smart insurance. The best way to keep your policies up to date and make sure you’ve got the coverage you need is to keep your providers in the loop whenever you make a big change. That way, you can put any worries about your finances to rest and just keep focusing on moving up.